According to court documents, Gallo conspired with co-defendants James C. Howard III, Michael R. Casey and others to defraud an estimated 700 investors between January 2010 and April 2011, prosecutors said.

Gallo and his co-conspirators told investors the company had a track record of profits, but there were none. Any payments made to investors were made using funds received from newer investors, investigators said.

While vice-president of Commodities Online LLC, Gallo diverted at least $2.5 million for himself and his family, court records stated.